Advanced

An inventory model with unidirectional lateral transshipments

Olsson, Fredrik LU (2010) In European Journal of Operational Research 200(3). p.725-732
Abstract
This paper deals with a continuous review inventory system with Poisson demand, in which lateral transshipments are allowed. In case of a shortage at a location, another location acts as a supplier, if it is possible. A common assumption in earlier papers is that transshipments are allowed between all locations. This network configuration may, however, not be the best choice for many reasons. one such reason is that it may be difficult to establish contracts between locations regarding the design of the transshipment policy. Another reason is that a system with many transshipment links is much more complex than a system with few transshipment links. In this paper, we study a system where transshipments are allowed only in one direction.... (More)
This paper deals with a continuous review inventory system with Poisson demand, in which lateral transshipments are allowed. In case of a shortage at a location, another location acts as a supplier, if it is possible. A common assumption in earlier papers is that transshipments are allowed between all locations. This network configuration may, however, not be the best choice for many reasons. one such reason is that it may be difficult to establish contracts between locations regarding the design of the transshipment policy. Another reason is that a system with many transshipment links is much more complex than a system with few transshipment links. In this paper, we study a system where transshipments are allowed only in one direction. This may be a reasonable policy if the locations have very different backorder/lost sales costs. Our approach is relatively simple and fast, and works well in most cases. (C) 2009 Elsevier B.V. All rights reserved. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Inventory, Lateral transshipments, Stochastic demand
in
European Journal of Operational Research
volume
200
issue
3
pages
725 - 732
publisher
Elsevier
external identifiers
  • wos:000270701200010
  • scopus:69749084264
ISSN
0377-2217
DOI
10.1016/j.ejor.2009.01.024
language
English
LU publication?
yes
id
12620f9c-145c-4a92-8e94-9880039303ef (old id 1535783)
date added to LUP
2010-01-27 10:34:50
date last changed
2018-05-29 10:47:05
@article{12620f9c-145c-4a92-8e94-9880039303ef,
  abstract     = {This paper deals with a continuous review inventory system with Poisson demand, in which lateral transshipments are allowed. In case of a shortage at a location, another location acts as a supplier, if it is possible. A common assumption in earlier papers is that transshipments are allowed between all locations. This network configuration may, however, not be the best choice for many reasons. one such reason is that it may be difficult to establish contracts between locations regarding the design of the transshipment policy. Another reason is that a system with many transshipment links is much more complex than a system with few transshipment links. In this paper, we study a system where transshipments are allowed only in one direction. This may be a reasonable policy if the locations have very different backorder/lost sales costs. Our approach is relatively simple and fast, and works well in most cases. (C) 2009 Elsevier B.V. All rights reserved.},
  author       = {Olsson, Fredrik},
  issn         = {0377-2217},
  keyword      = {Inventory,Lateral transshipments,Stochastic demand},
  language     = {eng},
  number       = {3},
  pages        = {725--732},
  publisher    = {Elsevier},
  series       = {European Journal of Operational Research},
  title        = {An inventory model with unidirectional lateral transshipments},
  url          = {http://dx.doi.org/10.1016/j.ejor.2009.01.024},
  volume       = {200},
  year         = {2010},
}